Ethereum: Analysts fear continued downtrend – despite overnight recovery
- Ethereum has seen an immense uptrend in the last 24 hours, with the cryptocurrency breaking free from its trading range in the $700 area and rising above $1,000.
- Where the entire market is headed in the medium term could largely depend on whether bitcoin remains stable in the lower $30,000 region or not.
- If the cryptocurrency can hold and consolidate above here, this could give ETH and other altcoins further room to rally in the coming days and weeks.
- One trader comments that Ethereum could be in a precarious position right now. He points to the high projected funding as one reason why it could continue to go down.
Ethereum has received some parabolic momentum in recent days, putting a firm end to the period of consolidation and underperformance against BTC that previously plagued its price action.
The cryptocurrency is now back above $1,000 after an immense rally and rejection seen overnight – and the bulls are trying to build a strong base of support here.
It remains unclear whether the cryptocurrency will Bitcoin Evolution ultimately hold above this level, as analysts widely point out that high funding and the strong presence of leverage in the market are currently negative signs.
Ethereum rallies back above $1,000 after rejection
At the time of writing, Ethereum (Go to Buy Ethereum Guide) is trading at $1,035, marking a notable bounce from recent lows at $720 and a slight decline from daily highs of $1,170.
Where the market goes next will no doubt depend largely on Bitcoin – and whether or not it can consolidate above $30,000.
ETH fell as low as $890 overnight, but buying pressure here proved immense and helped the market recover.
Analyst: ETH funding rates possibly gloomy sign
One trader is cautious about Ethereum’s prospects, writing that the strong rejection overnight and high funding rates could indicate selling into the move.
„Seems like monkeys are hitting the green leverage button. I’m out of leveraged longs at the moment.“
Bitcoin’s price action will undoubtedly have some impact on Ethereum’s. Any influx of selling pressure in BTC is likely to create tailwinds for ETH.